Final answer:
A hardware security module (HSM) is a device that encrypts data between servers and storage systems, handling cryptographic keys securely and offering better security than software encryption.
Step-by-step explanation:
A hardware security module (HSM) is a hardware device that sits between servers and storage systems and encrypts all data going from the server to the storage system and decrypts data going in the opposite direction. Its primary purpose is to provide a secure way to manage, process, and store cryptographic keys. By handling encryption at the hardware level, HSMs offer a more secure and performant solution than software-based encryption. They play a critical role in protecting sensitive data within various industries, such as finance, healthcare, and government organizations.